Hindustan Copper rose 2.76% to Rs 67.05 at 11:58 IST on BSE after the company said it has executed a joint venture agreement with Chhattisgarh Mineral Development Corporation for copper mining.
The announcement was made during trading hours today, 31 August 2016.Meanwhile, the BSE Sensex was up 76.76 points, or 0.27%, to 28,419.77.
On BSE, so far 2.35 lakh shares were traded in the counter, compared with average daily volume of 1.83 lakh shares in the past one quarter. The stock hit a high of Rs 69.40 and a low of Rs 65.10 so far during the day. The stock hit a 52-week high of Rs 73.60 on 22 August 2016. The stock hit a 52-week low of Rs 42.30 on 24 May 2016. The stock had outperformed the market over the past 30 days till 30 August 2016, rising 4.74% compared with 1.21% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 39.57% as against Sensex's 6.10% rise.
The mid-cap company has equity capital of Rs 462.61 crore. Face value per share is Rs 5.
The joint venture company (JVC) will undertake exploration, mining and beneficiation of copper and its associated minerals in Chhattisgarh. In the JVC, the equity share holding of Hindustan Copper will be 74% and Chhattisgarh Mineral Development Corporation (CMDC) will hold the remaining 26% stake. Initially the JVC will be formed with an authorized paid up capital of Rs 10 crore to meet the cost of exploration. CMDC will be allotted 26% equity in the JVC for consideration other than cash which would be against the services to be provided by CMDC for facilitating the varied licenses and approvals from Chhattisgarh state government. Any further capital requirement in JVC for development of mine & beneficiation plant may be structured on mutual consent, depending on the project viability post exploration. CMDC is a Chhattisgarh state government enterprise.
Hindustan Copper reported net loss of Rs 2.88 crore in Q1 June 2016 as against net profit of Rs 20 crore in Q1 June 2015. Net sales declined 12.2% to Rs 205.99 crore in Q1 June 2016 over Q1 June 2015.
Hindustan Copper (HCL) is a vertically integrated copper producing company encompassing mining, beneficiation, smelting, refining and casting of refined copper metal. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016).
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